The way a home purchase and/or mortgage financing is structured can make a huge difference to your future.
For example, a $100,000 home structured with a single loan for the full purchase amount with Mortgage Insurance (PMI) can have a wasted payment of $80 per month. That same $100,000 purchase structured with two loans, a first mortgage at 80% of value and a second mortgage at 20% of value, would eliminate the need for Mortgage Insurance saving the $80 per month premium. The combined monthly mortgage payments of the first and second liens usually is the same or less than the single loan with PMI. This is only one example of how mortgage structure can save you money.
There are other ways to structure financing depending on your individual needs and financial goals for the future. Suppose you want to invest for your child's future college tuition. Have you considered purchasing a rental property with a 15 year mortgage? Assuming the rental income covers the mortgage payment and upkeep of the property, when the mortgage is paid in full at 15 years you would have the potential for enough cash to fund your child's college education. The equity buildup of a 15 year mortgage is approximately 3 times faster than the equity buildup of a 30 year mortgage, therefore cash can be generated from the equity buildup by the sale of this property even if you do not hold the property until the loan is paid in full.
Another option for funding your child's education is by taking cash equity out of your residence. The interest is tax deductible whereas other loans are not tax deductible. This also might be a better plan than borrowing against or taking money out of a retirement plan, investment, etc.
Another scenario where proper mortgage structure is financially beneficial would be if your career would most likely require a move or transfer in 2-3 years. You might want to consider a 5 year fixed rate loan at a lower interest rate than a 30 year fixed and save that money. On a $100,000 mortgage, the payment difference could be as much as $86 per month - equal to approximately $3,000 savings in 3 years!
One more scenario is important to mention: When considering an FHA loan, there are many factors that may make this loan undesirable for you. FHA has an up-front fee of 1.5%, which can be added to the loan amount. You can actually end up with a loan that is almost equal to your purchase price - realizing very little if any equity at closing. A conventional loan may not have the 1.5% fee and you could realize real equity for almost the same closing costs.